A total of 3.04 billion dirhams (MMDH) in loans were raised by local authorities (CT) from the Municipal Equipment Fund (FEC) in 2021, according to the budget department under the Ministry of Economy and Finance.
“In 2021, the credit committee held 10 meetings to decide on loans for a total amount of 3.04 billion dirhams, intended to finance infrastructure and equipment projects for local authorities covering various financing sectors and a total investment of 13.7 billion dirham”, we read in the management’s activity report for 2021.
The loans granted consist of conventional loans with a share of 47% and an amount of 1.43 billion dirhams and loans pursuant to memorandums of understanding entered into between the Ministry of Economy and Finance (MEF), the Ministry of the Interior (MI) and FEC, regarding the financing of the share of MI or CTs in territorial development projects and programs (1.61 billion dirhams; 53%).
By type of borrower, the regions dominated the structure of loans granted to LAs with a share of 49%, specifies the report, noting that the year 2021 was marked by the signing of a memorandum of understanding in favor of the Tiznit-Laâyoune highway. for an amount of MDH 950.
Municipalities are in second place with 31%, followed by prefectures and provinces with a share of 20%. By intervention sector, the report shows that 30% of FEC loans financed urban development works, 21% road infrastructure, while 20% of loans were intended for special equipment.